When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A) producer surplus.
B) monopoly profits.
C) opportunity cost.
D) consumer surplus.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer is willing to accept and the market-clearing price. It measures the benefit that producers receive from producing and selling a good.

When Producers Would Have Been Willing to Accept Lower Prices